In the face of skyrocketing Oracle support costs and tight IT budgets, CIOs and CFOs are increasingly exploring third-party support as a savvy alternative. This comprehensive guide provides a roadmap for Oracle third-party support, covering what it is, its comparison to Oracle’s Premier Support, its pros and cons, cost savings, risk management, transition steps, provider selection, negotiation strategies, future outlook, and answers to frequently asked questions.
By the end, you’ll understand how to leverage third-party support to dramatically cut costs while managing compliance and risk.
Why Oracle Third-Party Support Matters Now
- Rising Oracle Support Costs: Oracle’s annual support fees typically consume 22% of your original license cost every year – and increase 3–5% annually. Over a few years, companies end up paying far more in support than the initial license price. For older products, Oracle often adds extended support surcharges (ranging from 10% to 20% extra) to continue receiving patches, until eventually placing products on “Sustaining Support” (full-price support with no new updates). In short, many enterprises are paying more and more for less and less value.
- Declining Value from Oracle Premier Support: Many CIOs feel that Oracle’s support offers diminishing returns. Critical new features are rare for mature on-premise products, and Oracle’s support often means slow response times and scripted answers. After a product’s first five years, Oracle provides minimal updates (unless you upgrade to a new version). Forced upgrades to stay supported, along with a lack of help with customizations, further erode the value. Enterprises question why they’re paying hefty fees “to keep the lights on” for stable systems.
- Executive Push for Efficiency: In 2025 and beyond, CFOs and IT procurement leaders face pressure to eliminate unnecessary costs. Software maintenance is a prime target. CEOs and boards ask IT to do more with less, and third-party support for Oracle has emerged as a strategic move to increase efficiency. Forward-thinking executives see that redirecting Oracle support dollars into innovation or cloud projects yields better ROI. The success stories of peers who saved millions by leaving Oracle support are fueling more interest in third-party alternatives.
In summary, Oracle’s cost vs. value equation is prompting a shift. CIOs and CFOs are realizing they can reduce Oracle support costs by 50% or more and still receive the necessary support.
Third-party support is now crucial because it provides a timely solution to mitigate costs and escape Oracle’s restrictive support model.
What is Oracle Third-Party Support?
Oracle third-party support means using an independent, external company (not Oracle itself) to provide maintenance and support for your Oracle software. Instead of paying Oracle’s Premier Support fees, you contract a specialized firm to handle bug fixes, troubleshooting, and updates for your Oracle products.
These third-party support providers employ experts in Oracle technology who can service your databases and applications without Oracle’s direct involvement.
- Who Provides It: Several independent Oracle support providers have established reputations in this space. Leading examples include Rimini Street, Spinnaker Support, Support Revolution, Origina, and others. These firms are not affiliated with Oracle; they are Oracle support alternatives that compete by offering similar (or better) support services at a much lower cost.
- Scope of Service: Third-party support typically encompasses all essential support functions, including responding to technical issues, diagnosing and resolving bugs, providing guidance on configuration and performance, and delivering critical updates. Notably, independent support vendors will also support customizations and integrations in your Oracle environment – something Oracle’s support usually refuses to do. Many third-party providers also create their updates for tax and regulatory changes (e.g., payroll updates in Oracle EBS or PeopleSoft), ensuring your system stays compliant even without Oracle’s official patch.
- Key Differences from Oracle Premier Support: Third-party support is not the same as Oracle’s official support, and it’s important to understand the differences:
- Cost Model: Oracle Premier Support costs ~22% of license value per year (with annual inflation). Third-party support fees are about 50% lower on average – roughly 10–12% of license value – and often without annual increases. The savings are immediate and significant.
- Patches and Updates: Under Oracle support, you get all official patches, bug fixes, security updates, and new version releases (as long as your product is in active support). With a third-party provider, you won’t receive new patches or version upgrades from Oracle. Instead, the third-party will supply necessary bug fixes or workarounds themselves. They keep your current software version running securely, but you forgo automatic access to future Oracle versions.
- Support Timeframe: Oracle’s support has a defined life cycle (Premier Support for ~5 years, then costly Extended Support for a few years, then Sustaining Support with no new fixes). An independent support vendor will support your older Oracle versions indefinitely. There are no forced end-of-support dates – you can run your stable system for 10–15 years or more if needed, with the third-party addressing issues the entire time.
- Upgrade Rights: Oracle support entitles you to upgrade to newer software releases (if desired) without requiring a new license purchase. Third-party support does not include rights to Oracle’s newer versions. If you decide to move to a new major Oracle release in the future, you will need to re-enroll in Oracle support or purchase new licenses at that time. Third-party support assumes you’re staying on your current version for now.
- Service and SLAs: Oracle’s support model relies on global helpdesks and tiered escalation, which may result in different personnel being assigned each time. Third-party providers tend to offer more personalized service – for example, assigning a dedicated senior engineer to your account and guaranteeing faster response times (24/7 SLAs). The service is often described as more flexible and customer-centric compared to Oracle’s one-size-fits-all approach.
- Contract Flexibility: With Oracle, support is an annual contract that auto-renews, and Oracle’s policies (like the “Matching Service Levels” rule) force you to maintain support on all licenses in a set. Third-party support contracts are generally more flexible – you can choose which products to put on third-party support and typically sign one-year agreements with the option to renew. You’re not forced to keep unused licenses on support; you have more control to drop or add coverage as your needs change.
In essence, Oracle’s third-party support is an independent support service that replaces Oracle’s own support. It comes with much lower fees and a tailored support experience, but it operates outside of Oracle’s ecosystem.
You continue to use your Oracle software legally, but Oracle Corporation is no longer providing the support; an expert third-party firm is.
This trade-off means you save money and gain flexibility, while agreeing to stay on your current software release (without Oracle’s new updates) for a specified period. For many companies with stable Oracle environments, this is an attractive proposition.
Pros and Cons of Oracle Third-Party Support
Like any strategic option, third-party support for Oracle has advantages and disadvantages. It’s crucial to weigh them for your specific situation.
Here’s a breakdown:
Pros of Third-Party Support:
- Massive Cost Savings: The number-one reason companies switch is to save money. Third-party support fees are typically 50%–60% lower than Oracle’s standard support costs. Over several years, this can amount to millions saved. Furthermore, you avoid ancillary costs Oracle imposes (inflation uplifts, extra charges for extended support, etc.). Some organizations report total maintenance cost reductions up to 90% when factoring in avoided upgrades and hardware refreshes. These savings free up budget for innovation, headcount, or other critical projects.
- No Forced Upgrades – Extend Legacy System Life: Third-party support allows you to run older, stable Oracle versions for as long as you need, without losing support. Oracle often pressures customers to upgrade to a new release or cloud solution to continue full support. In contrast, an independent provider will continue to support your legacy systems (Oracle Database, EBS, PeopleSoft, etc.) for 10+ years if needed. You avoid expensive, disruptive upgrade projects that Oracle’s roadmap might otherwise force on you. No more “upgrade or else” ultimatums – you control your IT roadmap and timing.
- Flexible, High-Touch Service: Many enterprises find that third-party vendors provide a better support experience. You often get a named primary support engineer who knows your environment, resulting in faster response times (critical issues are addressed in minutes, not days), and support for your custom code and integrations (Oracle Support typically says “not our problem” to customizations). Service Level Agreements can be tailored to your specific needs, and support is available for all your environments (both production and non-production) without additional fees. This personalized, responsive support model means issues can be resolved more quickly and with less finger-pointing.
- Freedom to Optimize Costs: With Oracle, it’s all-or-nothing – you pay support on everything, even unused licenses, and it renews annually by default. Third-party support gives you the flexibility to support only what you truly need. You can drop support for shelfware licenses and stop paying maintenance on modules you aren’t using (Oracle makes this difficult with their policies). Also, independent providers generally lock your rate – no automatic 4% increases every year. This cost predictability and control is a big pro for long-term IT financial planning.
- Leverage & Negotiation Power: Even aside from the direct benefits of switching, just having the option of third-party support gives you leverage with Oracle (more on this later). Knowing you have a viable alternative keeps Oracle in check – it can prevent vendor complacency that arises when they believe you have no choice. The competitive pressure can lead Oracle to offer discounts or more favorable terms to retain your business. In short, exploring third-party support strengthens your negotiating position.
Cons of Third-Party Support:
- No New Oracle Patches or Features: The biggest trade-off is that once you leave Oracle’s support, you lose access to Oracle’s official patches, updates, and new software versions. If Oracle releases a critical patch or a Version X upgrade with new functionality, you won’t automatically get it. Your third-party provider will offer their fixes for known bugs and often security workarounds, but they are not Oracle. For most issues, this is acceptable, but there’s a risk that some future bug or vulnerability may only be fully resolved by upgrading to a new Oracle release. In short, you forego Oracle’s development pipeline – acceptable for stable systems, but it could be a limitation if your business later demands a new Oracle feature.
- Perceived Risk (Compliance & Support Quality): Choosing an independent support vendor can feel like a bold move, and it may raise concerns among stakeholders:
- Compliance Risk: Some worry, “Is this legal? Will Oracle penalize us?” In reality, if you own your licenses and follow the rules, you have the right to third-party support. But the perceived legal risk can make people nervous (we address legality in the FAQ). You must also ensure you stay in license compliance on your own, since Oracle won’t be guiding you.
- Support Quality: There’s an element of vendor reliance – you are entrusting a third party to support mission-critical systems. Skeptics might question whether an outside firm can truly match Oracle’s knowledge of its products. There’s also the fear of the unknown: “What if the third-party can’t fix an issue?” In practice, reputable providers possess deep Oracle expertise; however, this concern is understandable and should be addressed through thorough provider vetting and service level agreements.
- No Automatic Upgrade Rights: While on Oracle support, you could upgrade to any newer version of the software at no extra license cost. Once you’re on third-party support, you cannot upgrade to a new Oracle version without re-signing with Oracle or buying new licenses. This is a con if your IT strategy involves an Oracle upgrade or if the business requires new features down the line. Essentially, you are pausing your Oracle software at its current version. Many organizations find this acceptable for 5+ years on a mature system, but it does mean future upgrades require planning (and likely significant cost to reinstate Oracle support).
- Rejoining Oracle Later is Costly: If, for any reason, you decide to return to Oracle’s support in the future, Oracle will make you pay for the gap. Typically, Oracle’s policy is to charge backdated support fees for the period you were off support, plus a 50% penalty of that sum, to reinstate your support contract. For example, if you left Oracle support for 3 years and want to return, Oracle might demand 3 years of fees plus 50% as a penalty – a significant expense. In some cases, purchasing new licenses (which include one year of support) may even be more cost-effective. While it is possible to return to Oracle, it’s a financially painful step. The con here is that the decision to leave Oracle should be considered a long-term commitment for each product, because reversing course later will come at a high price.
- Relationship and Perception: Finally, moving to third-party support can strain your relationship with Oracle. Your Oracle account representatives and support contacts will be aware that you have left for a competitor. Oracle, as a company, won’t assist you with support issues (since you’re not paying them) and may be less inclined to give you favorable terms on other deals. In some cases, companies have reported a higher chance of Oracle initiating a license audit after they dropped support (we’ll cover audit risks shortly). While this shouldn’t deter you if the benefits outweigh it, it’s a factor to consider: you are departing from Oracle’s direct umbrella, and Oracle’s sales team will not be happy about it.
Bottom line: The benefits of third-party support – including significant cost savings, extended support life, flexibility, and enhanced service – are highly attractive, particularly for mature systems that aren’t undergoing significant changes.
The cons – loss of Oracle updates, reliance on a new vendor, and making future Oracle upgrades harder – mean you must choose carefully which systems to switch and have a plan to mitigate risks.
Many enterprises find that for a significant portion of their Oracle portfolio, the pros greatly outweigh the cons, unlocking major budget savings with manageable downsides.
What Oracle Products Can Move to Third-Party Support?
Not every Oracle offering can be shifted to third-party support, but a wide range of Oracle’s on-premise products are eligible.
In general, any Oracle software for which you have a perpetual license and that you run in your environment (or on cloud infrastructure) can be supported by an independent provider.
Here are the prime candidates that enterprises often move off Oracle support:
- Oracle Database: All editions of Oracle Database (Standard and Enterprise) can be maintained by third-party support. Many companies with Oracle Database 11g, 12c, 19c, etc. Choose third-party support once those versions meet their needs. The provider will handle database break-fix support, performance tuning, and even security advisories for your DB environment.
- Oracle E-Business Suite (EBS): Oracle EBS (the on-premises ERP suite) is a popular candidate, especially for older versions. Oracle EBS 12.1, for example, fell out of Oracle Premier Support, pushing customers to upgrade to 12.2 or Oracle Fusion Cloud. Instead, thousands have opted for EBS third-party support to avoid upgrading. Even EBS 12.2 (which Oracle will support through at least 2033) can be migrated to a third-party solution if cost savings are the priority. All EBS modules (Financials, Supply Chain, HR, etc.) can be covered, including the necessary tax/regulatory updates.
- Oracle PeopleSoft: PeopleSoft HCM and Finance applications, widely used in HR and payroll, are fully supportable by third-party firms. Oracle has committed to support PeopleSoft through 2034, but at a high cost. Many PeopleSoft customers now utilize third-party support to save money while maintaining compliance with annual tax and legislative updates (delivered by the independent vendor). PeopleSoft is often highly customized, which makes the flexibility of third-party support very valuable.
- Oracle JD Edwards: JD Edwards (EnterpriseOne and World) ERP systems, commonly found in manufacturing and distribution companies, are often transitioned to third-party support. JD Edwards clients running stable versions have avoided Oracle’s upgrade pushes and sustaining support limitations by utilizing independent support providers who are familiar with the JDE technology stack.
- Oracle Siebel: Siebel CRM, another acquired product of Oracle, has a loyal customer base that sometimes hesitates to migrate to Oracle’s Cloud CX. Third-party support is a lifeline for Siebel users who want to continue using their on-prem Siebel CRM without Oracle’s escalating support fees. Providers cover Siebel bug fixes and even browser/OS compatibility updates to keep the CRM running smoothly.
- Oracle Hyperion: Hyperion EPM/BI products (like Hyperion Financial Management, Essbase, Planning) can be maintained by third parties. Companies that rely on legacy Hyperion for corporate performance management but don’t want to move to Oracle’s Cloud EPM have found savings by switching support. The independent vendor can support the Hyperion suite versions long after Oracle’s support dates.
- Oracle Middleware and Other Products: Beyond the major databases and applications, third-party support is available for Oracle Fusion Middleware (WebLogic Server, Oracle SOA Suite, etc.), Oracle Business Intelligence (OBIEE), Oracle Retail applications, Oracle Agile PLM, and many other Oracle software products. If it’s a mature on-premises product and you have control over the installation, chances are it can be covered. Note: Oracle’s SaaS/cloud offerings (such as Oracle ERP Cloud and Oracle NetSuite) are not eligible for third-party support, as they are provided as subscriptions that include support from Oracle. Our focus here is on traditional on-premise Oracle licenses, which you can choose to support via an external provider.
In summary, most Oracle enterprise products running on-prem or on IaaS (cloud infrastructure) can be shifted to third-party support. This spans your Oracle databases, ERP/CRM applications, middleware, and legacy systems.
A good rule of thumb: if you’re paying Oracle an annual support fee for a product and have the option to cancel that support, then you have the option to go third-party.
Always confirm with potential providers that they cover your specific version and modules. However, the list above covers the common targets where companies can save big with Oracle support alternatives.
Cost Savings Potential
One of the most compelling reasons to consider third-party support is the dramatic cost savings.
Let’s break down the savings potential and what it means for your IT budget:
- 50% Immediate Maintenance Fee Reduction: Nearly all organizations that switch to third-party support experience an immediate reduction of ~50% in their annual support fees for that product. Oracle’s support is notoriously expensive; by contrast, third-party providers usually charge about half of what Oracle does. For example, if you’re paying Oracle $1 million per year in support, an independent provider might charge around $500,000 for the same coverage. That’s $500k straight back to your bottom line in year one. Similarly, a company paying $10 million per year to Oracle could potentially save $5 million annually by moving eligible products to a third-party provider. These are real, significant savings that can be immediately reallocated to innovation or other budget needs.
- Avoidance of Hidden/Indirect Costs: The savings go beyond just the maintenance fee discount. Oracle’s support model often forces costs, such as hardware upgrades, software upgrades, and extended support upgrades, just to stay supported. With third-party support, you avoid many of these costs:
- Upgrades and Retirements: You’re not forced into expensive upgrade projects (which can cost millions in services and man-hours) simply because Oracle support is ending for an older version. Avoiding or deferring an upgrade is a huge cost avoidance – some clients estimate they saved as much as 70–90% of total costs by not having to undertake a major ERP upgrade and retraining.
- Extended Support Fees: Oracle charges extra (10%–20% premiums) when you stay on old releases past Premier Support. Third-party support means no such penalties – you pay the same low rate regardless of product age.
- Support for Unused Licenses: Many companies have shelfware or modules they don’t fully utilize but continue to pay support on (because Oracle requires entire license sets to be supported). By dropping Oracle support, you can stop paying for unused licenses. This could be tens or hundreds of thousands in savings right there.
- Internal Resource Savings: Third-party providers often handle more of the heavy lifting in support (including supporting customizations). Your internal IT team spends less time “self-supporting” or chasing Oracle for answers, which is an efficiency gain (translating to cost savings in labor).
- Budget Impact for CIOs/CFOs: The financial impact of these savings is huge for IT leaders. Large enterprises have reported saving millions per year, which either go back to the IT budget for strategic projects or contribute directly to improved EBITDA. Even mid-sized organizations see significant boosts – for example, a company that saves $ 300,000 per year on support could now fund several new IT initiatives or avoid layoffs in a tight budget year. For CIOs, third-party support is a tool to self-fund innovation: the money saved on Oracle maintenance can fund cloud migrations, new software adoption, or advanced analytics programs that previously lacked budget. For CFOs, it’s a way to trim fat from recurring OPEX without reducing the actual value IT delivers to the business. IT may deliver more value by reallocating funds.
- Example Scenario: To illustrate, consider a global manufacturer running Oracle E-Business Suite and databases:
- They pay Oracle $5 million annually in support across all Oracle products.
- By moving EBS and Oracle Database to third-party support, they save approximately $2.5 million per year, or 50%.
- They also avoid an impending upgrade for EBS that would have cost $4 million in project costs, as the third-party will support their current EBS version for five years or more.
- Over the next 5 years, this organization will save $2.5M x 5 = $12.5 million in direct fees, plus the $4 million avoided upgrade, totaling $16.5 million in benefits. That $16.5M can be invested in modernizing other systems or dropped to the bottom line. This is transformative, and it all stems from a change in support strategy.
In summary, the cost savings potential is often 50% or more of your Oracle support spend. Organizations commonly cite third-party support as one of the most significant IT cost reduction measures available, surpassing smaller optimization efforts.
It’s a lever that CIOs and CFOs can pull to immediately reduce run-rate costs and create breathing room in the IT financial plan.
The key is that these savings don’t come with a loss of operational capability – you still have support, just from a different provider. For many, that trade is a no-brainer when looking at the numbers.
Risks and Compliance Considerations
Switching away from Oracle’s support introduces some risks and compliance factors that you need to manage.
While none of these are deal-breakers with proper planning, they deserve careful consideration:
- Legal and License Compliance: Is it Legal to Use Third-Party Support? – This is a common concern. The answer is yes, it’s legal for customers to hire a third party to support their licensed software. Oracle can’t terminate your license just because you don’t buy their support. However, you must remain in compliance with your Oracle license agreements. Moving to third-party support doesn’t mean licenses are no longer required – you must still use the software according to the terms (i.e., not exceeding user counts, processor limits, etc.). Oracle’s contracts allow them to audit your usage, and that remains true even if you’re off support. Some companies fear Oracle might increase audit frequency once you stop paying them. Mitigation: Before and after switching, perform rigorous internal license audits (or hire a licensing expert) to ensure you have no compliance gaps. If there are any shortfalls, it’s better to address them (e.g., purchase additional licenses or reconfigure usage) while you still have a relationship with Oracle. Going off support in good compliance standing significantly reduces risk. Also, choose a third-party provider that offers indemnification and has strict protocols to avoid any illegal use of Oracle’s intellectual property. Reputable vendors operate carefully after past lawsuits – they use your legally obtained materials and won’t put you in a position that violates Oracle’s IP rights.
- Security Patches and Updates: One of the biggest risks cited is security. Oracle periodically releases Critical Patch Updates (CPUs) to fix vulnerabilities. If you’re not on Oracle support, you won’t get those new patches. This means you need a strategy to keep systems secure:
- Apply all final Oracle patches before leaving (get everything up to date while you still can download patches).
- Collaborate with the third-party provider to develop a security plan: top providers often have their security teams that monitor vulnerabilities and can create custom patches or mitigation steps. For example, they might provide a script to fix a bug or guidance to change a configuration to close a security hole.
- Accept that in some cases, truly critical vulnerabilities might only be fixed by upgrading to a newer Oracle version. If such a scenario arises (and it’s relatively rare), you’d have to decide whether to live with the risk, implement compensating controls (network segmentation, additional firewall rules, etc.), or ultimately consider moving back to Oracle long enough to get a patch. Many security issues can be mitigated without Oracle if you’re proactive.
- Mitigation: Treat security as an ongoing responsibility. Ensure you have strong network security around systems that require third-party support, utilize intrusion detection, and keep other technology layers (OS, firewall) up to date and patched. Many Oracle vulnerabilities can be managed by limiting access or using database security tools. Additionally, request that your third-party provider keep you informed of any new threats and their remediation strategies. With these steps, companies have run off Oracle support for years without security incidents – it requires vigilance, but it’s doable.
- Loss of Oracle’s Oversight & Updates: Beyond Security, Consider Functional Updates. If Oracle releases, say, a new tax update for a finance module or a regulatory change needed for compliance, you won’t receive that from Oracle. Top third-party providers, however, create their own tax and regulatory updates for applications like EBS, PeopleSoft, and JD Edwards. Ensure that any provider you choose has a proven ability to deliver these updates, if relevant to you (for example, payroll tax tables, VAT changes, etc.). Mitigation: Include in your contract or SLA that the provider will supply regulatory updates in regions you operate, if applicable. This ensures you remain compliant with government requirements even without Oracle’s patches.
- Oracle Contract Pitfalls (Matching Service Levels): Oracle has specific contractual policies that you must navigate. One key rule is the “Matching Service Levels” policy – Oracle does not allow you to drop support on a subset of licenses within a product family while keeping some others on support. If you attempt a partial drop, Oracle will either refuse or reprice the remaining licenses at full list price (wiping out any discount). In practice, this means that when transitioning to third-party support, you should plan to remove all licenses of a given Oracle product from Oracle support simultaneously. For example, suppose you have 100 Oracle Database licenses and want to use third-party support. In that case, you’d typically put all 100 under the third party and end Oracle support for that product entirely. Trying to move only 50 and retain 50 with Oracle will trigger contract penalties or exorbitant repricing on the remaining 50. Mitigation: Work out exactly which licenses/products you will transition and ensure you’re not unintentionally stranding a few licenses on Oracle support that could spike costs. Coordinate the termination correctly (we’ll discuss in the transition steps).
- Reinstatement Penalties: As mentioned in cons, if you leave Oracle support and later need to return (to upgrade or for any reason), Oracle’s policy is to charge backdated fees plus a hefty penalty. Be aware of this going in – it’s not a “risk” per se (since it’s known), but it’s a consideration. The risk would be if you misjudge a system as stable, but then urgently need an Oracle upgrade – you might face an unexpected multimillion-dollar cost to reinstate support. Mitigation: Only move systems that you are confident will not require major Oracle-delivered enhancements for the foreseeable future. And maintain a contingency fund or plan in case a return to Oracle becomes necessary; although it’s unlikely, having a financial plan in place can reassure stakeholders.
- Vendor Viability and Support Quality: You are entrusting critical systems to a third-party company. What if that company has problems? For instance, Oracle has engaged in legal battles with third-party providers (the Oracle vs. Rimini Street case spanned years, resulting in restrictions on how Rimini operates, though Rimini still prospers). There’s a theoretical risk that Oracle’s legal actions could disrupt a provider’s service or that a provider could go out of business. While the major firms today are stable and have thousands of clients, they are smaller than Oracle and don’t have Oracle’s financial might. Mitigation: Conduct thorough due diligence on the provider’s financial health and legal standing. Select a reputable vendor with a proven track record. Ensure your contract includes an “out clause” or escape hatch – for example, if the provider fails to meet SLAs or faces an injunction that affects service, you can exit the contract. Also, maintain your internal documentation and patch library so that if you ever need to switch providers or revert to Oracle in an emergency, you can.
- Audit Posture: Oracle’s license audits can occur regardless of whether you are on support. However, some anecdotal evidence suggests that once a customer stops paying support, Oracle’s LMS (License Management Services) may target them for an audit sooner, as it sees this as lost revenue to recoup. Be prepared for an audit. This circles back to compliance: keep meticulous records of your deployments and entitlements. Additionally, without a support contract, if Oracle identifies you as being out of compliance, you won’t have the usual negotiation avenue of “true-up as part of renewal.” They might demand a straight purchase at list price. So it’s critical to avoid being out of compliance in the first place. Many companies engage a third-party licensing consultant to perform an audit defense assessment shortly before they leave Oracle support, to ensure everything is in order. It’s a proactive cost that is well worth avoiding a nasty surprise later.
In summary, transitioning to third-party support is viable and safe if done correctly, but it’s not a decision to be taken lightly. You must manage the legal and technical risks:
- Confirm your licenses are clean.
- Download all the latest Oracle patches and documentation you’re entitled to before support ends (so you have them in your toolkit).
- Strengthen security and have a patching plan with your new provider.
- Select a reputable vendor and establish contractual protections.
- Keep an eye on Oracle’s moves (if they release a game-changing version, you’ll want to know it and assess the impact).
Thousands of companies, including highly regulated banks and government agencies, have successfully navigated these considerations.
It requires due diligence, but the reward is freeing yourself from Oracle’s high-cost support regime while maintaining control over compliance and risk. The next sections will delve into how to execute the transition smoothly and ensure it is successful.
How to Transition to Oracle Third-Party Support
Making the switch to a third-party support provider needs to be a well-planned project. You’ll want to minimize disruption and ensure all stakeholders are on board.
Here is a step-by-step transition approach:
- Assess Your Oracle Footprint and Support Needs: Begin by creating an inventory of all your Oracle products, versions, and current support costs. Identify which systems are good candidates for third-party support. Ideal candidates are stable systems with infrequent changes, applications no longer receiving significant new features, or products where the support costs far outweigh the support usage. Also, pinpoint any licenses or modules you’re not heavily using (shelfware). At the same time, note any upcoming Oracle support renewal dates – these will dictate your timeline. This assessment phase should also involve checking for any existing compliance issues (e.g., are you using more licenses or processors than you bought?). Fix those now if possible or plan to address them, so you leave Oracle support with a clean slate.
- Build the Business Case and Get Stakeholder Buy-In: Moving to third-party support is as much an organizational decision as a technical one. Calculate the 5-year cost savings for each candidate system (remember to include the avoided upgrade costs and Oracle’s annual increases in your model). Outline the risks and mitigation plans (from the previous section) to demonstrate that you have a clear understanding of how to manage them. Then present this analysis to key stakeholders: IT leadership, finance, procurement, legal, and any business unit owners of the applications in question. Highlight the significant ROI and how savings can be effectively reallocated to support business priorities. Additionally, explain that service levels will remain strong (possibly improve) and outline how you’ll mitigate risks such as security and compliance. The goal is to obtain approval from executives and address any internal resistance. Often, if the CFO and CIO are aligned, others will follow. It may be helpful to share case studies or references from other companies that have successfully implemented this approach to build confidence. Tip: Emphasize that this is not an irreversible decision – it’s a flexible strategy that can be adjusted if needed (for example, you can revert to Oracle in a worst-case scenario, albeit at some cost). This helps ease fear of the unknown.
- Select a Trusted Third-Party Support Provider: With approval to proceed, you should choose the provider who will deliver your Oracle support in the future. This is a critical decision – take the time to evaluate the top third-party support vendors (we cover criteria in the next section). Issue an RFP or at least have detailed discussions with the shortlist (Rimini Street, Spinnaker Support, etc., are likely contenders). Consider their experience with your specific Oracle products, the scope of services they offer, client references, and, of course, pricing. Most will propose a fee of around 50% of your current Oracle support costs. Look beyond price: evaluate their SLA guarantees, support model (including who and how they will support you), and any additional services (such as security services or advisory services). Also, review their contract terms, especially those related to legal protections (indemnification) and flexibility. Tip: Consider engaging a third-party support advisor or licensing consultant to assist with the selection process – they can provide valuable insights into vendor strengths/weaknesses. Once you have decided on a provider, negotiate and sign the contract, aligning the start date to coincide with the Oracle support end date for a seamless handover.
- Plan the Cutover Timing and Preparations: Timing is everything. Ideally, align your switch with the expiration of your current Oracle support period to avoid overlap or gaps in coverage. Oracle support is typically annual, so plan to end it on the same date as the renewal. Check your Oracle agreements for any notice period required to cancel support (some contracts require 30 or 45 days written notice before the renewal date). Mark this on your calendar. Before giving notice:
- Apply Latest Patches: Download and apply any final Oracle patches that are available and relevant to your systems. Archive all patch files, installers, and documentation from Oracle’s support portal for future reference (because you’ll lose access to Oracle’s portal after termination). Essentially, create a repository of Oracle’s latest delivered code for your products.
- Stabilize on a Recent Version: If you are a few releases behind and have the rights to a newer version that you’d rather be on, consider upgrading while you’re still on Oracle support. For example, suppose you own Oracle Database 19c licenses but are currently on 12c. In that case, you might consider upgrading to 19c under Oracle support, then switch to a third-party solution to maximize your longevity on that version. This isn’t always necessary, but if there’s a low-effort upgrade that gives you a more supportable baseline (and you have entitlement to it), it can be wise to do it pre-switch.
- Communicate Internally: Coordinate with your IT operations and support teams about the change. They should be aware that after date X, they will contact the new provider for support, not Oracle. Develop processes for engaging third-party support (e.g., ticketing, phone hotline, etc.). Also, inform any managed service partners or vendors who interact with your Oracle systems that Oracle’s support won’t be available, in case they need to adjust procedures.
- Execute the Switch (End Oracle Support, Onboard Third-Party): When you’ve prepared everything and the date is approaching, formally notify Oracle that you are terminating support for the specific licenses. This usually involves contacting your Oracle account manager or Oracle Support Renewal team in writing, referencing your Support Contract or CSI numbers, and stating you will not be renewing support for those licenses. Be very clear and get confirmation. Oracle will likely send you “quotes” to renew – you need to actively decline them in writing. Once the end date passes, your Oracle support access will be cut off (no more service requests or downloads from Oracle). Simultaneously, ensure your third-party support contract is active from that day forward. Top providers will often have a transition team working with you in the weeks leading up to and on the go-live day to ensure a smooth transition. They will typically conduct a knowledge transfer, gather details about your systems, and have support engineers ready to handle any initial tickets. The goal is a seamless cutover: one day, you just change where you call for help. If done correctly, end-users and business processes should not notice any difference.
- Post-Transition: Manage and Monitor: After moving to third-party support, keep a close eye on how it’s going:
- Track the vendor’s response and resolution times for initial issues to ensure they meet expectations. Have regular check-in calls with your support manager for your account.
- Verify that any routine updates (like regulatory patches for year-end) are delivered as promised.
- Keep internal documentation up to date: record the patch levels at the time of switch, archive the Oracle support termination confirmation, and document any changes made by the new support team.
- It’s wise to maintain a contingency plan. For example, decide what you would do if, after a year, you were unhappy (perhaps switch to a different provider, or, in the worst case, budget to return to Oracle if truly needed). Having this contingency, even if you never use it, provides an extra layer of comfort to stakeholders, ensuring they’re not left feeling “trapped.” In reality, companies rarely go back once they see the savings, but prudent planning never hurts.
- Celebrate the wins: periodically report the savings and improved support metrics to the leadership to reinforce the value of the move. This will be helpful if you plan to transition additional Oracle products in the future.
By following these steps, the transition can be low-risk and highly successful. Preparation and communication are key – both with Oracle (to handle contract changes) and within your organization (to ensure everyone is aware of the changes). Reputable third-party providers will guide you through this as well, since they have done it for hundreds of clients.
Leverage their experience on the dos and don’ts during the switch. With solid planning, you’ll barely miss a beat: your Oracle systems will continue running smoothly, users will get support when needed (just from a different company), and your finance team will immediately see the cost reduction in the next budget cycle.
How to Evaluate Oracle Third-Party Support Providers
Choosing the right third-party support provider is crucial – you want a partner you can trust with your Oracle environment.
Here are key factors and criteria to evaluate when comparing Oracle support alternative providers:
- Expertise with Your Oracle Products: Ensure the provider has proven experience supporting the exact Oracle products (and versions) you use. If you run Oracle EBS, does the vendor have a practice for EBS with seasoned experts? If you have Oracle Database and Middleware, do they thoroughly cover those technologies? The top providers will proudly share case studies or references in your industry and with your software stack. Look for breadth (covering databases, apps, middleware, etc.) if needed, and depth (years of experience, certified staff) in each area.
- Service Level Agreements (SLAs) and Support Model: Review the provider’s SLAs for response times and resolution expectations. Leading vendors offer 24/7 support with guaranteed response times (e.g., 15 minutes for critical issues). Understand how to file tickets and who is responsible for working on them. Do you get a dedicated support engineer or team that stays with you? What is the escalation path? A good third-party provider should beat Oracle’s standard support in responsiveness. Make sure their support hours cover your operations (especially if you’re global – you may need follow-the-sun support). Also, ask if they support all your environments (dev, test, prod) under one fee – many do, which is a bonus.
- Security and Patching Strategy: Since security is a top concern, directly question each provider on how they handle security vulnerabilities in Oracle products. Do they have a dedicated security response team? Will they provide custom patches or remediation guidance if a new CVE (vulnerability) emerges for, say, Oracle Database? Have them give examples. The best providers will have documented processes for staying on top of security bulletins and a track record of delivering fixes or mitigations quickly. This is a critical differentiator between serious enterprise-grade providers and weaker ones.
- Regulatory and Tax Updates (for ERP systems): If you use Oracle applications that require frequent legal updates (e.g., payroll, tax, or regulatory compliance changes), verify that the provider delivers those. For example, PeopleSoft or EBS HR/payroll needs tax rate changes and new forms each year; Oracle provides those under support. Your third-party vendor should provide equivalent updates on a similar timetable. Ask for specifics on how they obtain or develop these updates and how quickly they’re released when laws change. Customer references in heavily regulated environments are a plus here.
- Track Record and References: Vet the vendor’s reputation. How many clients do they have? How long have they been in the third-party support business? Request to speak to a couple of reference customers – ideally in your vertical or use case. A reputable provider will be happy to arrange this for you. During reference calls, ask about any challenges during the transition, the provider’s responsiveness, and any issues that have arisen over the years. Additionally, research whether the provider has been involved in any legal disputes with Oracle and how those disputes were resolved. (Most have, but the key is that they adapted, and their customers were not harmed.)
- Contract Terms and Protections: Review the contract carefully. Key things to look for:
- Indemnification: Does the provider indemnify (protect) you if Oracle were to sue or claim IP infringement related to how support is delivered? Top providers include strong indemnification clauses – essentially, they’ll defend you and assume liability if their methods are challenged.
- Termination and Flexibility: Can you leave the contract if you’re not satisfied (with notice)? Avoid any long-term lock-in beyond one to two years, unless there are guarantees. You want the ability to switch providers or even go back to Oracle if necessary (without contractual penalties from the provider).
- Price Terms: Is the annual fee fixed or can it increase? Many providers offer a fixed fee or a cap on increases (e.g., “no more than 3% increase per year” or similar). Ensure you won’t see steep hikes after year one. Also, check if multi-year discounts are offered.
- Scope of Support: Make sure it’s clear which systems are covered and what’s included. For example, are customizations supported (usually yes for good providers),and are there any exclusions (like certain third-party integrations)? Clarity here prevents disputes later.
- Upgrade Assistance: While third-party support won’t give you Oracle upgrades, some providers do offer adjacent services like technical advice on upgrades or migration (often as a separate professional service). If you think you might eventually need help moving to, say, Oracle Cloud or a newer version, ask if they have capabilities to assist (or if you’d have to find another partner for that).
- Financial Stability and Longevity: You want a provider that will be around as long as you need them to be. Check their financial health – if they are publicly traded or release financial figures, examine revenue growth and profitability. If privately held, ask for any indicators of stability (years in business, backed by a large parent company, etc.). The third-party support market has some very established players (15+ years in operation) – those are generally safer bets than a brand-new entrant. Also, consider the provider’s global presence if you operate internationally. Do they have support staff in your region or, at the very least, the ability to handle local language/time zone needs?
- Leading Providers Overview: As you evaluate, it helps to know the major names in the Oracle third-party support arena:
- Rimini Street: The largest and most well-known, supporting Oracle, SAP, and other software globally. They have a broad client base (over 3,000 organizations) and a full suite of services, often cited for strong SLAs and comprehensive support (including security and regulatory updates).
- Spinnaker Support: Another top-tier provider focusing on Oracle and SAP support. They emphasize personalized service and have a long track record. Spinnaker often highlights its expertise in Oracle databases and middleware, in addition to its applications.
- Support Revolution: A UK-based independent support firm covering Oracle and SAP. They often guarantee a minimum of 50% savings and have a growing international presence. Good option, especially for EMEA-based companies.
- Origina: Known initially for IBM support, Origina has expanded into Oracle and other software. Their position is based on strong technical expertise and an innovative support model. Particularly known in the IBM world, but worth checking for Oracle if they have relevant case studies.
- (There are other niche or regional players too. The key is to pick a provider that aligns with your needs and has demonstrable Oracle knowledge.)
- Pitfalls to Avoid: Be cautious of any provider that:
- Lacks Oracle-specific credentials – e.g., if they primarily do hardware maintenance and only recently added Oracle software support, they may not have the depth you need.
- Promises unrealistically low prices without a clear explanation – if someone offers far below 50% of Oracle’s fee, ensure they aren’t cutting corners. Quality support requires investment in good people.
- Has no references or only generic testimonials – any solid provider should have happy clients willing to vouch for them.
- Won’t discuss their methods or SLAs in detail – transparency is important. If they dodge questions about how they deliver patches or ensure legality, that’s a red flag.
- Pushes a long-term contract upfront – you should not have to sign a 5-year deal unless you’re extremely confident; flexibility is an advantage of leaving Oracle, so don’t give it up with the new vendor.
By carefully evaluating providers on these criteria, you can select a partner that gives you confidence.
The right third-party support provider will feel like an extension of your team – aligning with your priorities, keeping your systems running, and freeing up your budget. Take your time with due diligence; the decision is critical, but once made, it can set you up for success and savings for many years to come.
Enterprise Strategies for Negotiations with Oracle
Even if you are sold on the idea of third-party support, you can also use it as a powerful bargaining chip in your dealings with Oracle.
Here are some strategies enterprises employ to gain negotiation leverage:
- Obtain a Third-Party Support Quote (Leverage in Hand): One of the first things to do is get a formal quote from a third-party support provider for the scope you’re considering. Having this in writing – for example, showing a 50% lower cost – is invaluable. When Oracle’s renewal team comes knocking, you can let them know you have a quote from an independent provider at half the cost. This often catches Oracle’s attention and can significantly alter the tone of negotiations. Instead of the usual automatic uplift, Oracle reps suddenly realize they might lose your support revenue entirely. They may escalate your case internally to seek approvals for discounts or special offers to entice you to stay. Simply put, a credible alternative offer forces Oracle to reckon with competition.
- Be Willing to Walk (and Make Sure Oracle Knows It): Leverage only works if you’re prepared to use it. If Oracle believes you’re just bluffing about third-party support, they may call that bluff. To strengthen your position, drop hints (or outright tell Oracle) that you have executive backing to leave if Oracle can’t significantly improve the value proposition. Some enterprises even involve their CFO in discussions to demonstrate their seriousness about cost savings. When Oracle understands that you will move to the alternative, they’re more likely to present meaningful concessions. This could be a deep discount on support, or bundling in some free services or cloud credits. Of course, you must actually be ready to switch if Oracle’s offer falls short – otherwise, you’ll end up staying on poor terms. So internally align on a walk-away point and stick to it. Ironically, being genuinely ready to leave often results in Oracle giving you a deal that makes staying slightly more attractive – either outcome, you win.
- Time Your Negotiation to Key Dates: Oracle salespeople have quarterly and annual targets to meet. They are often under pressure at the end of the period to close deals. If your support renewal is approaching, you can use the timing to your advantage. For instance, if your renewal is due in June, initiating the “we might leave for third-party” conversation in Q4 of Oracle’s fiscal year (around April, since Oracle’s fiscal year ends May 31) can put you in a great position. Oracle will be extra motivated to not lose revenue during critical sales periods.Additionally, don’t sign any long-term renewals too early. Oracle might offer multi-year renewals with a small discount for signing well in advance, but that locks you in. It’s often better to hold off and keep the pressure on up to the renewal deadline. You may even choose to co-term multiple support contracts to expire together, giving you a larger leverage point and a bigger chunk of revenue Oracle stands to lose at once.
- Use a Hybrid Support Strategy: Another negotiation tactic is a partial move to third-party support – or at least the proposal of one. Perhaps you determine that one Oracle system (such as PeopleSoft) will be transitioned to a third-party solution, but you are open to keeping another (such as Oracle Database) on Oracle support if the price is right. By executing a hybrid approach, you send a message: “We have no problem leaving Oracle support where it makes sense, and we’ll do it piece by piece if needed.” Oracle might react by trying to “save” the remaining support business with better terms. This strategy can yield a compromise: you achieve some savings via a third party on one set of products and get Oracle to cut a deal on the rest. Be cautious with Oracle’s matching service policy, as you may need to drop entire product lines to avoid repricing (for example, moving all PeopleSoft licenses off Oracle). But you can certainly mix across different product families. Many enterprises run a mix of Oracle and third-party support depending on the product and criticality.
- Leverage Oracle’s Cloud Ambitions: Oracle is aggressively pushing its cloud services (OCI, SaaS apps). Sometimes, Oracle will offer incentives, such as “if you move workloads to Oracle Cloud, we’ll give you a break on support,” or vice versa. Keep in mind, these offers can be double-edged – they might reduce support spend but increase cloud spend. Still, you can use Oracle’s desire to grow cloud deals as leverage. For example, indicate that the money saved from third-party support could be reallocated to other cloud initiatives (with Oracle or another vendor). Oracle might counter with a proposal: reduced on-premises support fees if you commit to a certain level of Oracle Cloud usage. If the cloud is part of your strategy, you can negotiate a bundle deal carefully. Just ensure any deal genuinely benefits you and isn’t just shifting costs around. The key is to remind Oracle that you have options – either save money and potentially invest elsewhere (perhaps in Oracle Cloud, perhaps not) – so they need to be competitive to retain your business.
- Guard Your Plans Until Ready: A strategic point – try not to telegraph your third-party support plans too early to Oracle. If you openly discuss with Oracle months ahead that you’re considering dropping support, it could trigger defensive tactics (like a surprise license audit before you leave, or intense lobbying of your executives about “risks”). It’s often better to do your internal homework quietly, line up the third-party provider, and only involve Oracle when it’s decision time or when you need to negotiate. When you do communicate, be professional and fact-based; you’re making a business decision based on cost/value, not an emotional one. Oracle will likely escalate the issue to higher-ups or their “support retention” specialists, who will try to change your mind. Stick to your analysis. You can always consider Oracle’s counteroffers, but compare them objectively to the third-party route.In many cases, Oracle might offer a one-time 10% discount or a bundle, which often still doesn’t beat 50% savings plus no upgrades, etc. However, sometimes Oracle could offer something attractive (like a 50% discount for one year if you’re a major account, or free cloud credits equal to your support spend). Weigh these carefully. If Oracle’s concession isn’t close to the third-party value, be prepared to execute your plan.
In summary, third-party support consideration alone boosts your negotiating power. It provides a credible alternative to staying on Oracle’s treadmill, which is a scenario that Oracle sales teams dislike. By leveraging that alternative, you can either achieve a successful transition to independent support or negotiate better terms with Oracle. Either way, you create a win-win for your organization:
- Scenario A: You switch and save 50% or more outright.
- Scenario B: Oracle, fearing scenario A, cuts your costs or improves terms (perhaps not 50%, but maybe 20-30% plus other benefits), which is still a win compared to doing nothing.
Be strategic, be unafraid to push back on Oracle’s pricing, and use the existence of a competitive market for support to regain control of the conversation.
Where once Oracle dictated the support fees, now you have options to dictate your budget outcomes.
Outlook: Oracle Third-Party Support in 2026
Looking ahead, the landscape of Oracle third-party support in 2026 and beyond is one of growing adoption amid ongoing friction with Oracle.
Here’s what to expect shortly:
- Mainstream Acceptance: Third-party support for enterprise software is becoming increasingly mainstream. By 2025/2026, a significant number of Fortune 500 companies, government agencies, and global organizations will have either already made the switch or are seriously evaluating it. This trend will continue as more success stories emerge and the stigma or fear diminishes. Third-party support will likely be viewed as a standard part of IT strategy – a common tool in the CIO’s cost optimization toolkit – rather than an unusual or risky move. Analysts and sourcing advisors are now commonly recommending clients consider it, which further validates the model.
- Oracle’s Response and Tactics: Oracle isn’t sitting idle. Maintenance revenue is a huge part of its business, so expect Oracle to fight to retain customers. Some ways this might manifest:
- Oracle may continue to extend support timelines for older products (as they did with Applications Unlimited, pushing support dates to the 2030s) to reduce the urgency to leave. However, that doesn’t solve the cost issue for customers.
- Oracle sales teams and management will likely intensify the “FUD” (Fear, Uncertainty, Doubt) messaging around third-party support – emphasizing security risks, legal concerns, or loss of future innovation in even stronger terms. Don’t be surprised if Oracle presentations or emails exaggerate the dangers; it’s a competitive tactic.
- There could be commercial incentives thrown in: e.g., more aggressive discounting on support if customers also invest in Oracle Cloud, or special programs to “win back” those who left (perhaps offering to waive some back fees if returning from third-party support – although this would be a quiet, case-by-case thing to avoid encouraging departures in the first place).
- On the legal front, Oracle will likely continue any ongoing litigation against providers (like Rimini Street). By 2026, those cases (which have lasted years) might see further resolutions or new claims. However, given past outcomes, it’s improbable that Oracle can outlaw third-party support; they can only enforce boundaries on how it’s done. Providers will continue to adapt their methods to comply with court rulings.
- Innovation from Third-Party Providers: As the industry grows, third-party support vendors will continue to innovate and expand their services. We may see improved offerings, such as enhanced security monitoring, automated patch development, or even AI-driven support solutions, coming from these agile companies. They’ll also expand coverage to new software (for instance, supporting more Oracle Cloud infrastructure components, or even other software vendors’ products as part of a broader service). This could make the proposition even more attractive – not only saving money but potentially gaining a superior support model that leverages new technology faster than Oracle’s support might.
- Customer Strategies Evolving: Enterprises will become more strategic in how they leverage third-party support. It won’t always be an all-or-nothing decision. In the future, many IT portfolios will likely have a mix: core systems of record with third-party support (maximizing cost savings on stable legacy platforms), while new cloud solutions may naturally come with vendor support. Companies might cycle systems into third-party support during steady-state years and maybe back to vendor support if a major upgrade is planned. This fluid approach could become a standard practice for balancing cost and innovation. Additionally, more companies might use third-party support as a transition strategy – for example, running an Oracle application on third-party support for 3 years while they migrate to a different platform, thereby funding the migration with the support savings.
- Market and Industry Impact: The growth of third-party support will likely pressure Oracle (and other major software vendors, such as SAP) to reassess their support value proposition. We might (optimistically) see Oracle consider more flexible support pricing or tiered support levels to compete, though historically they have been rigid. At the very least, Oracle might begin to bundle more value into the 22% fee (like including some cloud credits or additional advisory hours) to justify it. However, given Oracle’s reliance on that revenue, radical price cuts are unlikely unless customer defection accelerates dramatically. On the other hand, customers leaving could slightly dent Oracle’s earnings growth from support; however, Oracle is now focusing on cloud revenue, which may eventually overshadow the support line.
- Long-Term Outlook: As 2026 approaches, Oracle’s on-premise customer base faces a fork: either move to Oracle’s cloud offerings or optimize the existing estate (via strategies such as third-party support or re-platforming to other solutions). Third-party support vendors are positioned to benefit because even those planning to eventually leave Oracle often use third-party support as an interim solution to save money while plotting the next move. By 2026, third-party support could well serve as a bridge for many organizations – keeping legacy Oracle apps stable and cost-effective until they decide on a long-term future (whether that’s Oracle Cloud, another vendor, or continuing on-premises indefinitely).
In summary, the future looks bright for third-party support adoption, and it will remain a thorn in Oracle’s side (to customers’ benefit). We anticipate continued market growth, increased success stories, and further integration of third-party support into standard IT best practices.
Oracle will continue to publicly dismiss or warn against it, but its actions (like extending support dates and offering targeted discounts) show that customer empowerment is forcing some change.
For the savvy CIO/CFO, this means more choices and bargaining power in the years ahead. Third-party support is here to stay, and by 2026, it may become a common topic in discussions of IT cost optimization and vendor management.
Related articles.
- Oracle Support vs Third-Party Support: Costs, Risks, and Benefits Compared
- Top 15 Facts About Moving to Oracle Third-Party Support
- How to Transition from Oracle Support to a Third-Party Provider
- Top Oracle Third-Party Support Providers in 2025
- Oracle E-Business Suite Third-Party Support
- Oracle Database Third-Party Support
- Oracle Third-Party Support vs Premier Support
- How Much Can You Save with Oracle Third-Party Support?
FAQ — Oracle Third-Party Support (2025–2026)
Is it legal to use a third-party support provider for Oracle software?
Yes – it is perfectly legal. When you buy a perpetual Oracle license, you own the right to use the software, and you are not obligated to purchase support from Oracle. No law or standard contract clause forbids you from hiring an independent firm to support your software. Thousands of companies (including government agencies and Fortune 500 firms) use third-party support without legal issues. The important caveat is that you must stay compliant with your license terms (don’t use more software than you have licensed, etc.), and the third-party provider must not violate Oracle’s intellectual property (for example, they can’t pirate Oracle’s code or patches and give them to you). Reputable providers are very careful to operate within legal boundaries – after years of litigation in this industry, the rules of engagement are well understood. Oracle may not like it, but they cannot terminate your licenses or sue you simply because you switched support vendors. They can still audit you, however, so compliance remains key. Overall, you have the right to choose who maintains your software.
How much can we save by switching to third-party support?
At least 50% of your Oracle support costs – that’s the typical immediate savings. For example, if your company pays $1 million per year in support fees to Oracle, a third-party provider would likely charge around $500,000 for the same coverage. Those savings appear in year one and every year thereafter. Over the next five years, that’s $2.5M saved in this scenario. Additionally, companies often save even more indirectly. You won’t have to do expensive upgrades just to stay supported (saving project dollars), and you might eliminate support fees on unused licenses (saving waste). When factoring in those avoided costs, some organizations find that the total savings can reach 70–90% compared to the status quo. For instance, not doing a $5M upgrade and saving $1M/year in fees adds up quickly. The exact figure depends on your specific situation, but you can expect to reduce maintenance spending by at least half. It’s one of the fastest ways to free up a large chunk of IT budget.
Will we lose access to Oracle patches and updates if we leave Oracle support?
You will no longer receive new patches, bug fixes, or product updates from Oracle once your support contract is terminated. Access to Oracle’s support portal and future patch downloads is lost. However, you do not lose the patches you’ve already downloaded or applied while you were a customer. Those remain valid, and you should download the latest available patches for your software before your Oracle support ends. After switching, your third-party support provider will take over handling any new issues that arise. They cannot obtain Oracle’s proprietary patches (since Oracle restricts them to paying customers). Still, they will provide alternative solutions, such as workarounds, configuration tweaks, or even custom-developed patches for your specific issue if needed. Many providers also deliver updates for regulatory changes (like tax updates) in Oracle apps, which are essentially their patches to keep your system current. So, you will lose Oracle’s patches, but you won’t be left unsupported – it just comes through a different channel. Think of it this way: any bug or security hole that Oracle’s patches would have fixed, your third-party support team aims to fix as well, just via a different method. One more note: if you need an official Oracle patch (for example, if Oracle fixes something in a later version), you’d have to return to Oracle support to obtain it. However, in practice, that scenario is rare for those who opt for stable systems and rely on third-party support.
Which Oracle products are best suited for third-party support?
The best candidates are mature, stable on-premise Oracle products that your business relies on but which aren’t undergoing constant changes or needing new features. In particular:
- Oracle Databases (all versions) – especially if you’re running an older version like 11g/12c/19c that’s working fine for you.
- Oracle E-Business Suite (EBS) – the full ERP suite (Financials, HR, Supply Chain, etc.), notably if you’re on versions 11i, 12.0, 12.1, or even 12.2 and want to avoid costly upgrades.
- PeopleSoft applications, including HCM, FSCM, and Campus Solutions, are often heavily customized and stable in many organizations.
- JD Edwards (EnterpriseOne or World) – popular in manufacturing and distribution sectors, good track record on third-party support.
- Siebel CRM – still used for on-prem customer relationship management in some large firms, and can be maintained independently.
- Hyperion (EPM/BI suite) – for financial planning and consolidation systems that aren’t going to the cloud yet.
- Oracle Middleware and other tools – including WebLogic Server, Oracle BI, Oracle Retail, Agile PLM, and older Oracle applications that Oracle may continue to support.
Essentially, if it’s an Oracle product you host yourself (or on cloud infrastructure like AWS/Azure), and you have a perpetual license, it can likely be supported by a third party. On the other hand, Oracle’s cloud SaaS applications (Fusion Cloud, NetSuite, etc.) are not eligible because their support is bundled in the subscription – you can’t split it. Additionally, suppose you have an Unlimited License Agreement (ULA) that is still in effect. In that case, you typically stay on Oracle support during the ULA term, but after certifying the ULA, you could move those licenses to a third party. So focus on the on-premise software that’s critical but maybe not evolving much – those will yield the best savings with minimal downside.
Can we return to Oracle support later if needed?
Yes, you can return to Oracle’s official support, but doing so will come at a steep cost (and potentially some hassle). Oracle’s policy for reinstating support is:
- You must pay the back support fees for the period you were off support. For example, if you left Oracle support for 3 years, you’d pay those 3 years of fees as if you had never left.
- Additionally, Oracle typically charges a penalty of 50% of the total back fee. This is essentially a surcharge for the lapse in support.
This means returning can be extremely expensive – often essentially paying double for the gap years. In some cases, Oracle may require you to purchase new licenses (which include one year of support) instead of reinstating the old ones, depending on which option is more cost-effective or their policy at the time. The bottom line is that Oracle will require you to pay significant “back dues” to rejoin the fold. There’s also a procedural aspect: you’d need to get Oracle to agree on what products and licenses you’re reinstating, possibly negotiate those fees, and you might need to apply any missed patches to become current again. However, there is no technical restriction that stops you from returning. It’s purely a financial barrier. Companies do occasionally go back – for instance, if they decide to do a major version upgrade or migration that they feel only Oracle can support, they bite the bullet and pay to reinstate support for a year or two. If you foresee a potential need to return (even as a slim chance), factor this into your decision. One strategy is to save a portion of the money you’re saving on third-party support into a “rainy day fund” that could cover a reinstatement penalty if you ever truly needed to go back for an upgrade. In reality, most don’t end up returning because third-party support meets their needs, or they move on to a different solution (like a new cloud system) rather than returning to Oracle. But yes, the door is technically open to return – it’s just an expensive door to walk back through.
Read about our Oracle support switch advisory service.